Allowance for Doubtful Accounts Has a Debit Balance of $980

question 61

Multiple Choice

Allowance for doubtful accounts has a debit balance of $980 at the end of the current year (prior to adjustment) . Net credit sales for the current period amount to $950,000 and 2.5% is estimated to be uncollectible. The adjusting entry would require a debit to:

• A)bad-debt expense for $23,750.
• B)allowance for doubtful accounts for $24,730.
• C)allowance for doubtful accounts for $22,770.
• D)accounts receivable accounts for $23,750.

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Definitions:

Third Places

Informal public spaces where people gather for social interaction, separate from their home (first place) and work (second place), such as cafes, parks, or libraries.

Roy Oldenburg

An American urban sociologist known for his work on the concept of "third places," which are important for civic engagement and building community.

High Culture versus Popular Culture

A distinction between the sophisticated artistic, literary, and musical pursuits associated with societal elites (high culture) and the more accessible, mass-produced entertainment and arts (popular culture).

Third Places

Social settings distinct from home (first place) and work (second place) where individuals gather for camaraderie and community, enhancing civil society.